The Office for National Statistics said strong winter clothes sales and a bumper Halloween for the supermarkets saw sales climb 7.4% compared to October 2015 - the fastest year-on-year growth since April 2002.

However, Royal Mail sat at the top of the biggest fallers, down 7%, after posting a fall in half-year earnings.

The group said uncertainty surrounding the referendum saw marketing activity reined in across the UK, with revenues from advertising mail down 8% in its first half.

This contributed to an 11% tumble in underlying earnings across its letters and parcels business, to £247 million in the six months to September 25. Shares were off 34.9p to 464p.

Across Europe, Germany's Dax was up 0.2%, while the Cac 40 in France rose 0.6%.

On the currency markets, the pound was 0.1% higher against the US dollar at 1.245 and grew 0.3% versus the euro at 1.168.

Sterling ticked up to 1.25 US dollars on the back of October's retail sales, but pared gains in afternoon trading.